-- Posted Friday, 31 January 2003 | Digg This Article

April Gold:  Close = $369.1, -.60

After hitting another new contract high earlier this week we ended on a flat note with gold a bit indifferent.  Consumer spending increased 0.9%, the most since last summer.  Quarterly numbers for Disney were near the high-end of expectations and manufacturing data was positive.  Perhaps this contributed to the jump in the dollar and stocks, and therefore stifled any attempt at pressing gold into a new high.  Overall however, the bullish freight train remains on the tracks.

We experienced a small price correction this week, but buying interest from gold investors and traders still appears steady as the dip attracted fresh buyers.  The gravity of the Iraq situation has been on the forefront of gold investors minds, and with few investment alternatives in the limelight, gold has attracted newfound attention this year.

Pullbacks have occurred the last few days, and that should come as no surprise to anyone.  If you are trying to buy near the $360 area, earlier in the day it appeared you had a chance, but the dip wasn’t deep enough.  Take note of the large gap on the chart that begins at 363.5 from the 23^rd and would be filled in on a pullback to the 361.5 area.  It's fair to say that until the Iraq issue is resolved, until stocks scream higher as investors regain their confidence, the gold market will have legitimate cause to remain well supported and make a stab to $400.  Be sure to watch TradeScope daily for order adjustments.  Remember, futures and options offer much flexibility as one can just as easily be short or long any market.  Each contract/option = 100 ounces, a $1 move in a futures contract = $100.  Contact me anytime to discuss strategies to fit your needs.

To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com.  Visit www.altavest.com to request a Free Starter Kit.  Keep in mind that there is risk of loss in all trading.

March Silver:  Close = $4.86, -1.0-cent

After a quick jab below 480, silver gained momentum along side the gold rally and closed with authority in the black.  There has been a lack of fresh internal fundamental news for some time, action has been led by gold.  Silver hit a 7-month high last week, is now consolidating and is perhaps building steam for another break into fresh high ground.  Last week the white metal came within shouting distance of the 500 barrier, but was held back by the struggling gold bulls.  The market remains in an uptrend, but still lags behind gold in terms of flexing its muscle, mostly because it’s an industrial metal.  We’re still anticipating a run to the 500 area soon.  Always maintain your perspective by keeping an eye on daily, weekly and monthly charts as opposed to intra-day charts.  Each contract/option = 5,000 ounces, a 1-cent move in a futures contract = $50.  Contact me anytime to discuss strategies to fit your needs.

To open an account and receive trading recommendations on silver futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com.  Visit www.altavest.com to request a Free Starter Kit.  Keep in mind that there is risk of loss in all trading.

-- Posted Friday, 31 January 2003 | Digg This Article

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